The Government of Goa and Power Finance Corporation have entered into an agreement with the World Bank for a sub-national blended finance facility for climate action. The agreement aims to promote low carbon emission, climate-friendly development.
key points
- Under the Memorandum of Understanding (MOU), Power Finance Corporation (PFC) will use innovative blended finance to finance key climate projects such as renewable energy, green hydrogen, electric vehicles, waste to wealth technology and nature based solutions.
- The Government of Goa will facilitate the successful implementation of the Foundation by identifying and developing a pipeline of climate projects, incentivizing policy decisions and facilitating stakeholder collaboration to take those projects forward.
- Power Finance Corporation (PFC) and the Government of Goa will pool resources and expertise with the aim of pursuing sustainable development.
- This agreement marks the beginning of a blended financing facility in India.
Blended financing facility
- It is an effort to attract private sector investment in climate initiatives.
- The blended finance facility was announced during the 2024 edition of the World Bank’s India Climate and Development Partners Meet.
- This conference was held in Panaji from 19 to 21 February.
- It was jointly hosted by the Government of Goa and the World Bank.
- It will support projects with existing funding and provide financing to projects/sectors without existing funding.
- It will act as an important bridge between the green financing mechanism and domestic capital markets and attract private capital investment for climate action.
- This will ensure sustainable operation and sustained capitalization of the program, by integrating carbon markets and using green credits.
- This will help India achieve net zero carbon emissions targets by 2070.
- This collaboration between the Power Finance Corporation (PFC) and the Government of Goa is important for green financing.
- Under this, Power Finance Corporation (PFC) will provide financial support to drive climate initiatives and energy use transformation through emerging technologies.
- This initiative is a partnership between the Government of Goa and the World Bank and leading financial institutions Power Finance Corporation (PFC), Small Industries Development Bank of India (SIDBI) and National Bank for Agriculture and Rural Development (NABARD), to finance climate action priorities. .
India Climate and Development Partners Conference
- The India Climate and Development Partners Meet is an annual gathering of thought leaders and change makers in the climate sector focused on advancing subnational climate action.
- The Partners Meet brings together India’s state governments to consider challenges and new opportunities for climate adaptation and resilience in collaboration with India’s private sector, civil society and financial institutions.
- The conference is also attended by representatives from financial institutions, businesses, think tanks, climate start-ups, women, youth and community groups who are pushing for climate action across sectors.
- India Climate and Development Partners Meet, 2024 focuses on climate finance leadership and innovation along with exploring topics such as technology in climate action, sustainable cooling and coastal resilience.
World Bank
- The World Bank Group is a group of five international organizations that provide finance and financial advice to member countries.
- The main objective of establishing this bank is to provide financial assistance to the member nations in the works of reconstruction and development.
- Its headquarters is in Washington, D.C.
- It was established in July 1944 during the Bretton Woods Conference.
- The Bretton Woods Conference is officially known as the United Nations Monetary and Financial Conference.